This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/world/2019/apr/26/belt-and-road-forum-xi-jinping-promises-transparency-to-ease-concerns

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
Belt and Road forum: Xi Jinping promises transparency to ease concerns Belt and road forum: Xi Jinping pledges transparency to ease concerns
(about 13 hours later)
President Xi Jinping has sought to allay concerns about China’s Belt and Road initiative, saying: “Everything should be done in a transparent way and we should have zero tolerance for corruption.” The head of the International Monetary Fund (IMF) has warned China against damaging the environment through unsustainable overseas investments as part of its “belt and road” infrastructure initiative.
He promised high standards in a bid to dispel complaints the projects costing many billions of dollars leave developing countries with too much debt. The IMF’s managing director, Christine Lagarde, used a speech in Beijing on Friday to urge the Chinese government to focus the belt and road investment plan, which involves ploughing billions into overseas infrastructure projects to connect China with the world, on sustainable development.
Xi avoided mentioning debt complaints in a speech opening a forum attended by leaders from some three dozen countries to celebrate his signature foreign initiative. But he said Beijing wants “open, green and clean cooperation” with “zero tolerance for corruption.” Lagarde also said investment should not build up vast levels of debt that could prove problematic in future. “I have said before that, to be fully successful, the belt and road should only go where it is needed. I would add today that it should only go where it is sustainable, in all aspects,” she said.
She was speaking at a gathering of world leaders in the Chinese capital to pitch for investment via the belt androad project.
Belt and Road summit puts spotlight on Chinese coal fundingBelt and Road summit puts spotlight on Chinese coal funding
Developing countries welcome the initiative to expand trade by building roads, ports and other facilities across Asia and Africa to Europe. But high costs have prompted complaints some are falling into a “debt trap”. Philip Hammond, the UK chancellor, had flown out to promote Britain, although at a sensitive time as a bitter diplomatic row erupts over UK contracts for Huwawei, the Chinese telecoms company, amid concerns over national security.
The United States, Russia, Japan and India also worry Beijing is trying to build a trade and political network centred on China and expand its strategic influence at their expense. Lagarde’s comments come after China said on Thursday it would take greater account of environmental issues in its investment decisions.
Xi’s government is trying to revive the initiative’s momentum after the number of new projects plunged last year. That came after Chinese officials said state-owned banks would step up scrutiny of borrowers and some governments complained projects do too little for their economies and might give Beijing too much political sway. They also come amid rising concern over the impact of climate change, fuelled by the extinction rebellion protests in Britain and school strikes across Europe orchestrated by Swedish climate activist Greta Thunberg.
Countries including Malaysia and Thailand have cancelled or scaled back projects while Ethiopia and others have renegotiated debt repayment. Lagarde said: “The launch of the green investment principle at this conference is a further important step forward for the belt and road initiative – and a step forward for green, low-carbon and climate-resilient investment.
Xi noted China’s finance ministry on Thursday issued guidelines for assessing debt risks for borrowers. The ministry said those “debt sustainability guidelines” are based on the standards of the International Monetary Fund and other international institutions. “Debt sustainability and green sustainability will strengthen belt and road sustainability.”
The president tackled complaints about lack of economic benefits and political influence, saying Belt and Road was “not an exclusive club” and promotes “common development and prosperity”. Xi Jinping, China’s president, also sought to allay concerns over the belt and road plan, which has the aim of expanding Chinese influence around the world but has generated concerns over its sustainability.
“We need to pursue open, green and clean cooperation,” Xi said. “Everything should be done in a transparent way and we should have zero tolerance for corruption.” Developing countries, where much of the belt and road spending has been directed so far, have been broadly welcoming of the initiative to expand trade between Asia, Africa and Europe by building roads, ports and other facilities and infrastructure.
His audience at a Beijing conference centre included prime ministers Aung San Suu Kyi of Myanmar, Lee Hsien-Loong of Singapore and Adiy Ahmed of Ethiopia and leaders or envoys from Greece, Serbia and Malaysia. However, there are fears some countries could fall into debt traps because of the high costs of the projects. China’s debt levels have also surged over recent years, to the alarm of the rest of the world amid fears over financial stability.
Xi said Beijing also wanted to expand the scope of its initiative by encouraging cooperation among Belt and Road countries on health, water resources, agriculture and science and technology. He promised to fund scholarships for students from Belt and Road countries. There are also concerns over corruption, and the environmental impact of projects which link China to natural resource-rich economies.
Xi promised high standards in an effort to dispel complaints. “Everything should be done in a transparent way and we should have zero tolerance for corruption,” he said.
Western countries, led by the US under Donald Trump in particular, worry Beijing is trying to build a trade and political network centred on China that could threaten their traditional economic dominance.
Xi is pushing to rekindle the momentum of the belt and road plan after the number of new project starts fell last year.
China had stepped up the scrutiny of its state-owned banks, involved in funding the plans, amid fears over rising debts and after some countries complained projects would not do enough for their economies and handed too much power to Beijing.
Malaysia and Thailand are among countries that have cancelled or scaled back the ambition of projects. Ethiopia has renegotiated its debt repayments.
Xi said China was applying debt sustainability criteria recommended by the IMF. He also said the project was not exclusively benefiting China, while it also helps to promote “common development and prosperity”.
“We need to pursue open, green and cooperation,” he said. “Everything should be done in a transparent way and we should have zero tolerance for corruption.”
Belt and road initiativeBelt and road initiative
ChinaChina
Xi JinpingXi Jinping
Asia PacificAsia Pacific
Christine Lagarde
International Monetary Fund (IMF)
news
Share on FacebookShare on Facebook
Share on TwitterShare on Twitter
Share via EmailShare via Email
Share on LinkedInShare on LinkedIn
Share on PinterestShare on Pinterest
Share on WhatsAppShare on WhatsApp
Share on MessengerShare on Messenger
Reuse this contentReuse this content